Consejo Superior de Investigaciones Científicas Instituto de Políticas y Bienes Públicos (IPP) 1...

1Consejo Superior de Investigaciones CientíficasInstituto de Políticas y Bienes Públicos (IPP)

The emerging role of Public-private partnerships in Spanish

S&T and innovation policies

Luis Sanz-Menéndez

Ministry of Education and ScienceCSIC Institute for Public Goods and Policies

OECD Working Party of Senior Budget OfficialsSymposium on Evaluating Innovative Approaches to Public Service DeliveryMadrid, 30-31 October 2007


OECD Symposium on Evaluating Innovative approaches to public service delivery, Madrid 30-31 October 2007

Outline of the presentation PPPs in the context of Research and Innovation Policies Features of the research and innovation system Former PPPs initiatives prior 2004 OECD Review of the PPPs in Spain (2004) Background and rationales for new PPPs Responses to the OECD Review: CENIT



The “context” of research and innovation policies confronting PPPs

Evolution and changing targets of science, technology and innovation policies Research direct performance Mission oriented and applied technologies Indirect measures (incentivating private

investments)

Production, diffusion and utilization of knowledge as central factors for economic growth, social welfare and sustainability



Profiling the Spanish Innovation System

0

50

100

150

200

250

300

350

400

450

500

GD

P p

er c

apita

Ann

ual g

row

th o

f GD

P

Ann

ual M

FP

gro

wth

Inte

nsity

of R

&D

exp

endi

ture

s

Inte

nsity

of b

usin

ess

R&

D e

xpen

ditu

res

Inte

nsity

of p

ublic

R&

D e

xpen

ditu

res

Pop

ulat

ion

of p

rofe

ssio

nals

and

tech

nici

ans

Pop

ulat

ion

of b

usin

ess

rese

arch

ers

Gra

duat

ion

rate

at P

hD le

vel i

n S

&E

Sci

entif

ic a

nd e

ngin

eerin

g pu

blic

atio

ns

Sha

re o

f S&

E a

rtic

les

in li

fe s

cien

ces

Sha

re o

f S&

E a

rtic

les

in p

hysi

cal s

cien

ces

Den

sity

of i

nnov

ativ

e fir

ms

Con

cent

ratio

n of

"tr

iadi

c"pa

tent

fam

ilies

Bus

ines

s fu

ndin

g of

pub

lic R

&D

Bus

ines

s fu

ndin

g of

hig

her

educ

atio

n R

&D

Firm

co-

oper

atio

n w

ith u

nive

rsiti

es

Firm

co-

oper

atio

n w

ith g

over

nmen

t

Bre

adth

of i

nter

natio

nal c

oaut

hors

hip

ties

Sha

re o

f pat

ents

with

fore

ign

co-in

vent

ors

Con

trib

utio

n of

fore

ign

affil

iate

s to

R&

D

Inte

nsity

of v

entu

re c

apita

l inv

estm

ents

Sha

re o

f tec

hnol

ogy

inte

nsiv

e ex

port

s

Performance range of OECD countries Performance range of G7 countries Spain

Macro-economic performance

R&D activities

Human resources in

S&T

Scientific output

Innovative output

Science-industry linkages

International linkages

Technological entrepreneurship

& industrial structure



Situation and evolution of R&D and innovation in Spain

R&D effort still low but growing fast, GERD/GDP: 1.10% (2003); 0.82% (1997)Industry financed R&D also growing [48,4% (2003); 44,7% (1997)], but still far from the EU averageSignificant contribution of business to the funding of HERD and GOVERD



Share of HERD and GOVERD financed by industry

Share of HERD financed by industry

Spain

Total OECD

EU-15

0.0

2.5

5.0

7.5

10.0

12.5

1981 1984 1987 1990 1993 1996 1999 2002

Share of GOVERD financed by industry

Spain

Total OECD

EU-15

0.0

2.5

5.0

7.5

10.0

12.5

1981 1984

1987 1990 1993 1996 1999



Situation and evolution of R&D and innovation in Spain

Innovative firms: 20,6% (2002), but improving Innovative firms in Spain cooperate in innovation less than in other European countriesSize of companies is positively correlated with innovation cooperationSuppliers are the main source of innovation information for SME, while Universities play a significant role for larger companies



Innovative firms cooperating in innovation (%), 2000

15,4 15,4

20,2

30,3

18,017,1 17,1

18,5 19,1

16,5

19,8 19,8

22,6

26,3

19,9

7,4 7,48,4

5,3

7,9

11,9 11,9

21,6

13,7 13,7

15,8

13,6

30,8

26,6

19,1

16,3

12,8

26,6

24,4

18,2

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

10 to 49 50 to 99 100 to 249 250 and more Total 2000

Other firms same group Customers Suppliers Competitors

Consultancy and experts Universities Gov. Research Centres



Challenges and opportunities of the Spanish innovation system

Industrial structure is dominated by services, low and medium technology industries and SMEsPROs (specially universities) are the biggest knowledge producers and a reservoir of S&T capabilities (70% of all researchers)



Other features of the R&D and innovation policy environmentInstitutional fragmentation of S&T policy domains: Various Ministries of the central government involvedRegional governments (17) also play a very active role in S&T and innovation policiesS&T and innovation action is developed under then umbrella of the National R&D and Innovation Plan, resembling EU RTD FP



Policy targets and implementation

Therefore promoting “technology transfer” from PROs to industry and fostering sustained “cooperation between industry and science” has been part of the underlining rationales and explicit objectives of S&T and innovation policies…but: historically too much fragmentation in the programs and policy initiatives, because of the dominant bottom-up policy model



Types and cases of PPPs for R&D and innovation:1. Public funding for RTD&I in a context of increasing

relevance of PP collaboration2. Constructing and supporting a common pool of

resources for technological services and innovation and under PPP

3. Competence RTD centers in specific technology areas

4. Steering Public research activities under PPPs 5. Clustering and Agglomeration strategies under PPPs6. Changing the R&D regulatory environment to

encourage PPPs and blurring boundaries between public and private

7. New commercialization, start ups and spin off strategies of PROs

8. PPPs for strategic private funding of RTD of general interest areas



General features of the PPPs for research and innovation before 2004 Small size of the projects supported Limited timeframe of the

cooperation Multiple instruments and

Fragmentation Stretching of traditional instruments

of public policy Bottom up initiatives from the

societal actors



As a way of balance before 2004

Many initiatives and experiments, but not canonical PPPs programsSome of the most interesting cases are bottom-up initiatives, but have been taken on board by governments



Problems and opportunities in 2004 (I)

A new, or an evolved, policy rationale is driving the innovation system into more PPPs (new conditions for a more intelligent public funding)New initiatives from below (firms and PROs) and experiments that implies a “societal demand” of PPPs approaches are emergingPolitical opportunity: 25% of R&D budget increase expected next 4 years.



Problems and opportunities in 2004 (II)

A more pro-business view of S&T and innovation policies favours the development of PPP, but the institutional architecture of S&T&I policies (Ministries of Education & Science versus Industry & Technology) often creates important constraints because of the “customer-client view” of the Ministries in the context of distributive politics



Problems and opportunities in 2004 (III)

International diffusion of PPPs for innovation policy is a relevant factorNeed of “policy entrepreneurs” and “strategic research actors” (with negotiating skills) to overcome the pervasive battles over distributive politics within inappropriate institutional environments and to built an “advocacy coalition” for PPPs OECD could play a role in shaping the outcome



The impact of the OECD evaluation

End 2003: the Spanish authorities requested the cooperation from OECD to evaluate the current practices of PPP for Research and Innovation (CSTP-TIP)The Review was developed in 2004 and published early 2005.Mid 2005: The Spanish Government launched (in the context of National Reforms Program) INGENIO 2010, including the CENIT Programme (Strategic Consortia for Technological Innovation)



OCDE(2005): “…the Spanish system of research and innovation has now reached a sufficient level of sophistication for a new approach to the promotion of science-industry relationships to be successfully experimented […] adapting the model implemented in diverse OECD countries to the Spanish conditions.”

Australia Austria France The Netherlands

Sweden

Co-operative Research Centres (CRCs) Programme

Kplus, Kind/Knet

Research and Technological Innovation Networks (RRITs)

Leading Technology Institutes (LTIs)

Competence Centers

Other countries experiences

CENIT (Consorcios Estratégicos Nacionales de Investigación Tecnológica)

Results of the OECD PPP review



CENIT Background and Rationale (1)

Strong role of universities and PRO in the Spanish Research and Innovation system Industrial structure: large share of low-medium tech industries, large share of SMEs, large share of MNCs, Large share of service economy



CENIT Background and Rationale (2)

Fostering sustained cooperation between industry and science, that is... over a longer period (min. 5 years)... on an institutional basis (but flexible)... with an ambitious researchprogramme (significant budget)



Goals of PPPs for Research and Innovation

Encouraging existing firms to engage in more radical types of innovationPromoting technology-based start-upsIncreasing the role of the Public Research sector in providing a research base to be utilized co-operatively with industry...but: multi-purpose programmes with many goals - problem of target setting!



Description of the Programme – CENIT

since 2005fostering long-term collaboration between enterprises and public research institutionsDespite some technology areas mentioned, no ex-ante setting of thematic prioritiesCompetitive selection process (public calls)First call subsidies for 200 M€ (16 projects)Second call: Subsidies for



TRADITIONAL INSTRUMENTS

One shot projects Small duration (1-3 years) and limited scope Support mainly based on soft loans

Low commercial risk RTD Limited behavioral additionality and leverage of private investments

CÉNIT Thematic lines of research Long duration and bigger size Bigger role of public subsidies

Research with more commercial risk Bigger leverage of private funding and behavioral additionality

National R&D&I Plan 2001-2003: 60K € subsidy + 116K € repayable

loans per projects

CENIT Projects:10-20 Million euros per project

CENIT PP collaboration programme versus previous instruments



Long Term Research Contractual Agreements between firms and research groups in PROs for a joint research programme

Minimum size: 4 firms (2 SME) and 2 PROs Minimum duration: 4 years extendible Minimum budget of the project: 5 M euros per year Financial rules:

i) Minimum contribution of private sector: 50%ii) Minimum participation of PROs and TICs: 25%

Expected Budget of the CENIT programme: 1,000 M euros in 4 years (half private).

CÉNIT Programme: General features



Elements of good practice (1)Implementing a sound concept of PPPs based on international experienceTargeting systemic failures instead of specific sectorsApplying a flexible, bottom-up approachClear governance structure (caveats!)Ensure quality through selection criteria and processes



Elements of good practice (2)Long-term commitment and additionallity (trust, behavioral additionality)Clear delineations to other sources of public supportCatalyst of change for setting new standards in evaluation and policy learningDiversified portfolio and broad participationLinkages and visibility



Challenges of PPPs instruments for RTD and innovation ins SpainSynergies and overlaps with other instruments? How many new projects?Future after the funding? Governing structures of the projects Sustainability and transformation into joint research centersDifficulties of measuring efficiency and additionality. Evaluation



Thanks

[email protected]

[email protected]

Consejo Superior de Investigaciones Científicas Instituto de Políticas y Bienes Públicos (IPP) 1...

Documents

Transcript of Consejo Superior de Investigaciones Científicas Instituto de Políticas y Bienes Públicos (IPP) 1...